I THINK MF INDUSTRY IS GOING THROUGH A TURBULENT PHASE WHEREIN EVERYTHING SEEMS TO BE IN TOTAL CONFUSING LIKE: RIA, GST AND WHAT NOT ?

MF distributors who worked hard since last 15 - 20 years to spread, penetrate the MF in hinterland & remote locations of country. working with a penny brokerage as cpmpared to other financial products like insurance. never sold fraud chit fund products & r always faithful to clients. With the efforts of MFDs, when aum of mf industry is at 20 lac crore & Equity SIP book is of more than 4000 crore a month, now SEBI comes with a paper that MFDs can not advise. it is better if they told us this before 15 years. means such a huge sip book & aum is the result of misselling or proper client centric advise ?? MFds r cheapest labours available to mutual fund industry. he is the soft target for one & all. now these unorganised labours r explioted in possible ways.

sebi is a copy cat,these ideas are copied from western,foreign investors may be ready to pay the advisors ,but in india its not possible,how many investors are ready to pay distributors ,may be 1% ,i strongly condemn this move from sebi,no distributors should opt for RIA,

Sebis decision regarding Ifa can be challenged in court. There are Mf companies, banks who are actually doing misspelling whom Sebi is shielding

This move of SEBI towards IFA is unethical as they says IFA should get clients signature on declaration. Are IFA doing any criminal activity for their clients??? Also with stating that he is not acting for the best interest of clients!! So, then how IFA would do the business?? Also IFA cannot advise clients, so if any client asks that why I am selling one fund to him, can we say that SEBI told us not to explain the product?? And last, I want to say that many young educated people like me who just stared their business who honestly working for client, educate them how to invest, where to invest and provides them proper investment information, if we dont get commission then how we will survive?? This move will reduce the MF business and young advisor like me who have no sufficient income, will divert peoples investment to some other segment which will never help investor as well. This step to stop the brokerage, declaration, no advice is totally against to IFA

its good . investor aware that what we are earning ( in fact they dont care about what i earn ) and second thing mutual funds come in this country more than 22 years before and its surprising that after 22 years amfi promoting that what is mutual fund and how can invest in mutual fund. this is growth of mutual funds ?. and sebi is now trying to kill distributor slowly ( its is the only channel who give there service and advise very personally and honestly ), i am not telling that we want more brokerage, i only concern was please look humanely our side. i dont how ria work in this country where we make relation with the investor very personally .

SEBI is trying to push mf distributors out of business by implementing RIA. I dont understand where they got so many problems pertaining to IFAs that they want to change entire system? again they are asking public opinion but are they going to listen to public or MF distributor body? Last time also they asked opinions but dont find it in their regulatory papers. Lastly is this a final paper or any updated version is likely to hit us in coming years like update in softwares?

Your views and points are wonderful. I do not understand why there is endless interruption in the way IFAs are doing their business and really promoting Mutual Funds among a very large sections of society. As you said is there any complaint from any investors? Why SEBI is always targetting small but useful sales persons? Certainly the ultimate sufferer will be small investors. Let us hope to conduct business in a dignified way and be a part of progress.

Violently atrocious!It seems better sense will never prevail on SEBI!! Brilliant analysis.SALUTATIONS for your RIGHT thinking & concern for DIGNITY of MFDs.Thanks for heralding `Anguish cry of innocent VICTIMS`

Its clearly a stupidity to get sign on a paper from a client that, I may not take good decision on your half... Lets take it from SEBI, is SEBI write on Demat account form that we may not protect your capital in market investment... What is this, already many jobs lost, and now the people who self occupied, SEBI going to axe on it... complete wrong so far...

LETS DO SOMETHING. ITS UNFAIR..WE ALWAYS WORK IN CLIENT INTEREST.

By reading SEBIs consultation paper one dialogue of a movie came to my mind " Mera Baap Chor Hai." written on left hand of a leading hero.

GREAT ANALYSIS MR.V.V. WHAT TIMES ARE WE IFAS FACING THROUGH. HOPE WE ALL CAN COLLECTIVELY DO SOMETHING.

Logical Solution MF RIA with regulated and similar trail No trail or similar trail across industry , both avoids conflict of interest RIA being a registered entity can be expected to work with some ethics and also can be held responsible for any wrong doing

This is my disclaimer. "The SEBI may not be acting in the MFs best interests?"

Brilliantly written by both..... First by SEBI.... and then By Mr Venkaraman. The irony is that this paper will have lot of unintended consequences. Which probably needs to be thought of by the regulator. It would be indeed very painful process of building a new set of network to have financial inclusion. On a lighter note would the new ads will have to say MF shayad Sahi nahi hai ?

Wow excellent article Vijay, happy to see atleast someone had the guts to question the autocratic way of publishing consultative papers. You have nailed most of the points. Mis-selling is not specific only to MFD/IFAs its in all forms of investment related activity. Hope the right people see it and act accordingly.

"The investment adviser should should not receive commission from the product manufacturer." and then, it goes on say "Banks, NBFCs and body corporates offering investment advisory services through separately identifiable departments or divisions (SIDDs) under the existing framework shall segregate the same within a period of six months through a separate subsidiary." Capital is also a form of consideration and can be viewed as leading to conflict of interest. The subsidiary can be funded endlessly from profits arising out of MF Distribution. For true avoidance of conflict of interest, there should not be any identifiable proximity between advisory and distribution entities to the extant that even two immediate relatives should not be allowed to engage into two different segments. Only then, we will truly come to know, how many IAs can have sustainable businesses.

back to square one. sebis has got no other issues to meddle hence crack the systems so that their relevance is at helm. in this country the systems are frequently disturbed so that no one knows their jobs while the people involved get out after their service is over. systems are meant for breaking not for solving and mitigating the issues involved. while the governments motive is to improve the overall employment , economic activity to push the country out of quagmire of poverty and welfare , these people are putting spokes based on the power of empowerment. god bless-sadbhavana

To me the objective looks like this: Incapacitate the MFD in such a way that s/he is in no better position than an online portal. In such a way that MFD cant argue her/his role offering any kind of advice as far as legality is concerned. Online Platform thus can have a better sailing. Absolutely Frustrating!! Hope it can be collectively challenged based on the strong arguments produced above.

Great analysis.

What should i call myself if iam selling other products like insurance along with mf

Wow!! "If you are so worried that MFDs are a bunch of crooks, shut down the activity." Its really annoying what is happening at SEBI. I do not understand what they want and very rightly said : "Or is it simply that someone is not happy with the number of RIA registrations and is keen to tweak regulations to drive up the numbers - whether or not there is any evidence of investors not being well served under current regulations?" JUST MAKE ONE REGULATION THAT MF CANT BE EVEN SOLD BY DISTRIBUTOR- WE DO NOT NEED YOU ANYMORE. WE ARE GETTING HEALTHY INFLOWS IN EQUITY BY WAY OF SIP AND ONLY DIRECT MODE IS ALLOWED..

SEBI will never be able to make a policy satisfying anybody.. First SEBI needs to do introspection on what they actually want to do with MFs SEBI does not deem it fit for MFDs to be involved in the regulatory process in short we are again at cross roads of this great profession